Dow up 103, S&P up 9, Nasdaq up 32

NEW YORK -- U.S. stocks closed higher Wednesday as investors focused on better-than-expected corporate results and testimony from the chairman of the Federal Reserve. The Dow Jones industrial average rose 103 points, or 0.9%, to end at 12,909. The S&P 500 gained 9 points, or 0.7%, to 1373. The Nasdaq added 32 points, or 1.1%, to 2,942.

Associated Press archiveA trader races across floor of the New York Stock Exchange.

The advance was led by technology shares, which rallied after Intel said PC sales rose 4% in the most recent quarter, although the technology bellwether warned that growth will be slower in the current quarter.

Intel rose 3.3% to lead the Dow. Hewlett-Packard , Cisco and Microsoft were also among the top performers.

Bank of America's results beat analysts' expectations, but investors remain worried about mortgage-related expenses. Shares of Bank of America fell 4.9%, making them the worst performer on the Dow.

After the market closed, IBM reported better than expected earnings, but sales were weaker than expected in the second quarter. American Express reported second-quarter earnings that rose 7% from the same period last year, although the credit card company said customer spending was slower than in previous quarters.

"The path of least resistance seems to be up," said Ben Schwartz, chief market strategist at Lightspeed Financial. "You generally don't sell a quiet market in the summer time." The stock market has been surprisingly resilient recently, but investors remain cautious, he said.

"You're not seeing the action you'd normally see in a 100-point move in the Dow," said Schwartz. "I don't see the conviction."

Fed chief Ben Bernanke returned to Capitol Hill for a second day to testify on monetary policy before the House Financial Service Committee. He reiterated testimony before the Senate Banking Committee, when he raised concerns about Europe's debt crisis and the so-called "fiscal cliff" in the United States.

Overall, investors are grappling with an uncertain outlook for Europe and a looming fiscal crisis in the United States, said Martin Leclerc, chief investment officer at Barrack Yard Advisors in Bryn Mawr, PA.

"The big question is how much of the fiscal cliff and European currency crisis has been factored into stocks," said Leclerc. At the same time, he added that stock valuations remain "very attractive."